Chinese Drywall Crisis in American Housing
Toxic Building Material Contaminates Homes, Spawns New Business
Oct 16, 2009
Several lawyers along the American Gulf coast have put together class action lawsuits to find relief for the growing number of families whose homes have been ruined by contaminated Chinese drywall. Many of the families are hurricane victims who had recently built new homes or made major repairs to their storm-wrecked houses.
Thousands of the Chinese-manufactured boards were imported into the United States starting in 2004. The toxic boards reportedly emit a sulfur compound that causes a rotten egg odor and corrodes electrical wiring, copper coils and other metals within the walls of recently-built houses.
Some families fear fire from the corroded wires and health problems from long-term exposure to the toxic material. That, according to the Wall Street Journal, is in spite of a Florida Department of Health report that the level of drywall of emissions pose no "immediate health threat."
American Drywall Manufacturers
The drywall problem has already spawned new business for lawyers, construction and repair companies, testing companies, doctors and medical clinics, building material companies, American drywall manufacturers and technology firms looking for ways to control the odor and the damage caused by the sulfur compound. It has activated home owners associations and government agencies.
Many homes have already been abandoned. Families that can afford the cost, estimated at up to $100,000, are scheduling medical examinations and major repairs, including board replacements, wiring and appliance replacements and treatment of woodwork and furniture. The long-term repair projects are forcing families to find other places to live, sometimes for months.
Many families, especially hurricane victims who have recently built new homes, cannot afford the repairs. The Associated Press reported that insurance companies are denying responsibility for coverage of the drywall damage. They compare the home damage to a faulty manufactured part in a new automobile, which is not covered by insurance.
Insurance Companies Canceling Polices
In addition to denying coverage of the damage, at least some insurance companies are canceling existing insurance on the damaged homes. Without insurance, some families may face bankruptcy, loss of their home mortgages and their ability to make loans.
Some lawyers have even advised clients not to file drywall claims or make reports to their insurance companies because:
- The claim will be rejected;
- The insurance company may then cancel the family’s existing policy because the damage disqualifies the house for insurance.
Other lawyers have said that insurance companies will eventually learn of the damage and may later reject an unrelated claim because the family did not report the drywall damage.
Chinese Manufacturers
So far, drywall lawsuits have not progressed any further than the insurance claims because of confusion over which parties are responsible for the toxic boards.
- Many of the small contractors who installed the drywall are no longer in business or have no funds:
- The retail and wholesale sellers are difficult to identify and find;
- The Chinese manufacturers, if they can be identified, would be difficult to bring into an American court. One has already denied blame.
The two brightest hopes for the drywall victims are:
- Small payments and/or tax breaks from federal or state governments. One group of Virginia victims visited Congress in 2009 seeking assistance with the problem.
- Breakthroughs in methods of treating the drywall without tearing up the house.
Sabre Technical Services Announces Process
In mid October 2009, Sabre Technical Services of New York announced that it had developed a chlorine-dioxide-based decontamination process to deal specifically with drywall damage in residences and small buildings.
But even if the proposed treatment does work, it comes too late to help many families hit first by hurricanes and then Chinese drywall.
References:
- Presentation, 2.25.09 by Dr. David Krause, State Toxicologist, Florida Department of Health, Division of Environmental Health
Website, Steinberg Law Firm, Houston, 2-25-09
"Sabre Announces Roll-Out of Permanent Solution to Chinese Drywall Problems," PR Newswire, 10-15-09
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